A Million Dollar question?

Question

If I have a million dollars in the bank how do I protect it from the $100k fed insurance limits?

Do I have to put it in 10 different banks?

Thanks

Answer 1

I believe so, the FDIC only insures each bank up to $100K . the FDIC was developed after the incident in the 20's (sorry bad with dates). It guarentees your account up to 100K at that bank.

Answer 2

FDIC only insures up to $100K.  If the bank failed you would LOOSE $900K.  Never keep that much in the bank.  Invest it.  Most likely in Treasury Bonds (safest).

Answer 3

If you invest it, you won't have to worry about the FDIC. If you leave a million dollars in the bank for however many years, at the end of that time you will have less money than when you started because the rate of inflation is higher than the interest rate. So even though you will have more dollars, you won't be able to buy as much with them.

I hope this helps.

Answer 4

Buy some Bonds, invest some in mutual funds, invest some in shares and put the remaning in different bankes so that you are safe with it...So enjoy it...Peace...

Answer 5

If you are wanting to make sure you never lose it, yes, you would have to place it in ten different accounts.

But there are so many other better options than placing it in a savings account. Money Market, CD's etc. Most banks are more than solvent these days, with a few rare exceptions.

Answer 6

If you only have a million dollars, then yes, you have to put it in ten different banks to protect it. You should never ever leave all of your money in just one bank. A lot of banks have been either merging or becoming out of commission lately.

But if you are interested in keeping your money safe, you should buy stock options, and use the straddle strategy. A straddle is where you buy a stock, expecting to make a profit from it when it goes down, and you buy another but the same type of stock, expecting to make a profit from it when it goes up. So you buy two stocks. When the date expires, you'll just keep the one that makes you the profit.

Answer 7

you'll firstly have to protect it from all the people in Y!A here!!!

Answer 8

Hopefully you would invest it in something other than sitting in a bank account.